Tuesday's Winners and Losers: NCI Building Systems

Washington Mutual (WM Quote), a member of both sector trackers, slid 8.8% following yesterday's postclose announcement that it will slice 41 cents off its quarterly dividend to 15 cents a share, as well as offer around $2.5 billion in convertible preferred stock, in efforts to shore up its shrinking capital levels. The bank will also take a $1.6 billion after-tax charge this quarter from its home-lending business due to mortgage-market woes, as well as its forthcoming efforts to size it down.

Among other things, WaMu plans on halting subprime lending entirely and laying off around 2,600 employees from its home-lending business, or 22% of the unit's work force, as well as roughly 550 other positions. Its institutional broker-dealer business, WaMu Capital, will also be shut down, along with its mortgage banker finance warehouse lending operation. Citigroup cut the stock to sell from hold on the news, while Fitch Ratings lowered WaMu's long-term issuer default rating to A- from A. Shares surrendered $1.75 to $18.13.

And Freddie Mac's (FRE Quote) Chief Executive Richard Syron expects that the mortgage investor will see between $10 billion and $12 billion credit losses on its current book of business, according to Reuters. Its shares dropped 5.4% at $33.15 as sister firm Fannie Mae (FNM Quote) lost 4.5% at $35.24.

Shares of Celgene(CELG Quote) and Millennium Pharma(MLNM Quote) settled down on Tuesday as investors digested competing data for Celgene's oral Revlimid and Millennium's Velcade injection as front-line multiple myeloma drugs.